Kuala lumpur: Shares of Genting group of companies emerged among the top gainers in early trade today after Genting Bhd (GENT) announced a proposed RM6.74 billion privatisation of Genting Malaysia Bhd (GENM).

According to BERNAMA News Agency, at 10.08 am, GENM rose 19 sen to RM2.33, with 121.45 million shares changing hands, while GENT gained 11 sen to RM2.97 with 18.63 million shares traded.

In a note today, Public Investment Bank Bhd (PIVB) stated that the conditional voluntary takeover offer extends to all the remaining 2.87 billion ordinary shares in GENM not already owned by GENT, representing a 50.64 per cent equity interest, at a cash offer of RM2.35 per GENM share.

PIVB maintains a ‘neutral’ call on GENT but upgrades GENM to ‘buy’, given the upside potential from the privatisation offer and the possibility of securing the downstate New York casino licence.

Meanwhile, Hong Leong Investment Bank Bhd advised existing shareholders of GENM to accept the offer, as the proposed price represents a 14.1 per cent premium over its previous target price of RM2.06.